Corrs Chambers Westgarth has advised Peabody Energy Australia in relation to the recently announced transaction to sell its Metropolitan coal mine to a subsidiary of South32 Limited.

The Metropolitan coal mine is an underground metallurgical coal mine located in the Southern Coalfields of New South Wales.

South32 will acquire the Metropolitan coal mine for a cash purchase price of US$200 million, subject to a customary working capital adjustment. The transaction also includes a contingent value right that enables Peabody to realise additional cash proceeds should future metallurgical coal prices remain in excess of an agreed forward curve for a period of approximately 12 months following Completion.

Completion of the transaction is subject to approval from the Australian Competition and Consumer Commission.

The Corrs team was led by partner Bruce Adkins and supported by Special Counsel Stuart Clague.

“The Corrs team is delighted to have worked with Peabody on this significant transaction. Despite the recent doom and gloom surrounding the Australian coal sector, this and other recent transactions demonstrate that quality Australian coal assets continue to be in demand,” said Corrs Partner Bruce Adkins.

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